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Lower revenue and higher interest costs helped boost the U.S. Postal Service's annual loss in fiscal 2010 to more than double that of 2009. The Postal Service said Friday that it widened its loss for the year, which ended Sept. 30, to $8.5 billion from a loss of $3.8 billion in the previous year. Excluding the effects of interest-rate changes, which apply to its workers' compensation debt, the Postal Service took a $6 billion loss on revenue that fell 1.5% to $67.1 billion.

The institution's cost-cutting efforts, which include cutting the equivalent of 105,000 full-time positions over the past two years, haven't been able to keep up with the revenue loss as mail volume has dropped approximately 20% in the past three years. First-class mail shipments fell 6.6% in the past year after declining 8.6% in fiscal 2009.

"We will continue our relentless efforts to innovate and improve efficiency," Chief Financial Officer Joe Corbett said in a statement Friday. "However, the need for changes to legislation, regulations and labor contracts has never been more obvious."

In late September, an oversight board unanimously rejected the Postal Service's attempt to raise the price of a first-class stamp to 46 cents from 44 cents, saying the organization had failed to sufficiently quantify the effect of the recession on operations and how much mail shipments might decline if rates were increased. The Postal Service last raised the price of a first-class stamp, from 42 cents, in May 2009.

Without the option of raising stamp prices, the Postal Service has requested other allowances, such as changing the frequency of mail delivery, closing unprofitable post offices and restructuring a $5.5 billion obligation related to employee retirement benefits.


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retiredge76

Congress will never cut back on the postal service. It's a form of pork barrel votes.

November 14 2010 at 9:52 AM Report abuse rate up rate down Reply
skvy975

can't believe postal workers on here haven't commented on the boondoggle that is the Flat Sorting Machine (FSS). Here is a piece of equipment purchased for how many millions of dollars and in how many cities by the P.O. that was supposed to be the save-all of the postal service. Was going to eliminate thousands of clerk and carrier positions(but of course not management). These machines are literally the size of a football field. Just as wide, but not quite as long. Special buildings must be available or built to house them. The concept on paper is a good idea: Let's give the carriers their flats in routed order just like their letters are coming to them now. There was a time when all mails, flats and letters were cased manually in routed sequence by the carrier. Along comes the DPS machines that does that for our letters now - hence the need for the barcodes on the front and back of your letter mail. Great concept, would never want to go back to the pre-DPS days, it would take forever to case 8 to 12 feet of letter mail on my route everyday. Not working so great for the flats though. Last figure I heard that these super expensive machines are only able to handle 40% of the flats on any route on any given day (as compared to about 95% of the letter mail being machined) and shredding of peoples magazines and catalogs is a real problem. Now I have a very affluent route. The amount of income a household makes is directly proportional to the amount of mail they get. It's nothing for my route to get 10 tubs of flats everyday. At a 40% rate thru the machine, that leaves me 6 tubs that still have to be thrown by hand. However the P.O. will adjust my route to show that 100% of my flats are being machined. Thus creating OT to get your mail delivered, or your flats/magazines sit on the floor if OT is not approved (management actually looks at your mag. subscriptions. If it's a monthly it can sit, a weekly can only sit a day or two). So here is the creation of even more overtime, or lack of service and undoubtedley more grievance awards as the front line supervisors have no choice but to violate the national agreement to get your mail delivered (yes, we do have an enforceable contract, sorry you don't). It's a vicious cycle with no end in sight. As I posted earlier, their computer programs tell them how long each route should take. What the programs don't tell them is the difference in mail bundles that will vary my casing/office time, the fact that there's 4 ft of snow on the ground(yes, we've actually been told our routes shouldn't take any longer to deliver in January than they do in June), a carriers age (I'm almost 60, can't run like I did when I was 30). These programs give me the same amount of time to deliver 20 parcels/signature required mail as it would for 1. Is there another business out there that doesn't count all of an employee's work load to get an accurate account of their day? Nope, just the U.S. Postal Service. I hate to keep harping on this, but we truly are being mismanaged to the point of bankruptcy. Just let the carriers do their jobs. Contrary to alot of posts on here, all we want to do is get your mail delivered to you and not have it back up around us on the work room floor. But management's computer programs won't allow it. Stand up talks in the morning concerning customer service are a joke. Oh, we're allowed to give service as long it doesn't interfere with their numbers. And their numbers determine their end of the year bonuses. Oh I'm sorry, they don't get bonuses. What they do get are performance awards that are tied directly to their numbers. At least when they got their bonuses these monies weren't tied into their salaries. Now however, these awards are pay jumps that will increase their pensions when they retire. Congress is long overdue in looking into the problems the P.O. is experiencing. Just a few weeks ago the PMG's request for a 2 cent stamp hike got turned down. Yet when asked by a member of congress if the upper echelon of the postal service should start paying at least something for their health bennies to save money (these upper tiers are covered 100%), he flat out said no. There isn't another govt. agency that needs to be looked at and looked at hard.

November 14 2010 at 1:39 AM Report abuse rate up rate down Reply
wmkingsman

I retired from the Postal Service in 1998. Most of us saw this coming, at the time. Short sighted Management then, made no effort to change with the times. The Letter carrier Union won ridiculous over-bloated concessions from management. Of course, today the Union is screaming about needed concessions from Them in order for the Mess to survive in some fashion.

November 13 2010 at 4:51 PM Report abuse +1 rate up rate down Reply
bohemianacres

Jamie, your thoughts are pretty much in line with mine. I would add to yours: I really do not need my mail coming every day of the week, although my grandchild looks for the mailperson to chat with for a few moments each day. There has been only once in the last four years I have needed the mail in a couple of days and that was for a train ticket. My fault for ordering late. Otherwise, even once or twice a week is fine. About the stamps, I agree there are so many to chose from. The printing costs must be out of this world. I would say keep it simple. Everyone likes flowers or animals. My grandchildren look at the stamp more than the inside letter or card when there is an animal or plant on it. And every couple of months throw in places historically important to America like the Statue of Liberty. Of course, this would all add to the unemployment situation, but when the back is to the wall in debt, something has to be done.

November 13 2010 at 12:45 PM Report abuse rate up rate down Reply
Frankie

I think the post office would save a bundle if they would cut down on their advertising. I must see a half dozen ads on TV for the postal service. Why do so much advertising when everyone is aware of the postal services?

November 13 2010 at 10:08 AM Report abuse +2 rate up rate down Reply
checker70

STOP, end this 6 day home delivery. All mail is delivered by zip code, if the 5th. number is odd number you get delivered Mon.-Wed.-Fri. even numbers Tues.-Thurs.-Sat. We don't need you at our door every day.Mileage on vehicles greatly reduced, layoff another 100,000 and you should be able to reduce postage rates to .32 cents

November 13 2010 at 10:08 AM Report abuse +4 rate up rate down Reply
Robert Boshears

I am retired from the Postal Service and I have stated this many times. The Union is necessary, but stop protecting those who will not work, stop promoting worthless managers (mistresses and minorities only because of their color, not qualifications). The workers can and will deliver the mail and do not need many layers of supervisors and managers constantly looking at them. Over half of the managment team I ever worked for was unqualified, or someone's girlfriend or relative. When a pair of silicone boobs are better than a Master's degree in business, you will fail everytime.

November 13 2010 at 9:59 AM Report abuse +1 rate up rate down Reply
MarlinMan450

do away with the post office it's long over do and raising stamps are not the answer!!!!!!!!!!! i do my business with ups a company that know how to ship. goodbye usps you sliced your own throat. the most unorgainized group of clowns

November 13 2010 at 8:05 AM Report abuse rate up rate down Reply
rfmcbob

One should note that the data on mail volume provided to the Postal Regulatory Committee showed volume increasing over each of the past four years. simply put the postal service was providing falsified information in attempting to ramrod a rate increase through the system. also note that it is increasing the hiring of management personnel while eliminating clerical and mail handler personnel

November 13 2010 at 8:00 AM Report abuse rate up rate down Reply
1 reply to rfmcbob's comment
Jamie

I would like to see where you recieved this information. This is an issue that I am very interested in and would like to do more research on it. Thank you in advance.

November 13 2010 at 8:10 AM Report abuse rate up rate down Reply
jrzygrl2255

What about the fact that I do most of my shopping via the internet and have things shipped, many times by the post office.. what about the money they're making there? Alot more than a 44cent stamp! The postal service is poorly managed.

November 13 2010 at 7:47 AM Report abuse +1 rate up rate down Reply